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First off...edit your post to remove the starred out word and replace it with another approved word.
If you leave the stars(a word that's blocked)...you will get reprimanded by a moderator.

Now for the questions...

1. The only way to adjust the ride height is by adjusting the shock springs...or the body posts.
2. Shouldn't need to change the gearing unless you plan on running 2 batteries in series.
3. Any body listed for a 1/16 car will fit. As far as Traxxas bodies,the Fiesta,Rally,Boss 302,and the Craftsman truck series body.
4. To get that long of a run time...you'll need to parallel 2 Lipo batteries(which will also increase motor/esc temps when running that long...keep an eye on those.)
5. Depends on the batteries and the charger.
6. Nothing else...that's it.(assuming your KB is the brushless version) If it's brushed...you'll need to swap the motor,motor mount,and esc.
7. If you are talking about removing the tires form the wheels...you'll need to find a way to release the glue. Do a youtube search. there are several videos explaining the options.
8. Series wired nimh batteries...again...watch temps.
9. They should last awhile...mine still have a lot of life in them and I run the mess out of it.
10. Yes they are. Most of the 1/16 Traxxas parts interchange...and are readily available.
11. The Ken Block body is no longer produced. you can find replacements used on ebay from time to time.(I personally have 3 KB bodies so far)

You can only get a small amount of clearance increase by adjusting the stock shocks.
The best thing you can do to increase off road capability is to switch the shocks out to Revo shocks...and install Slash tires on it.
I did this to mine for awhile and it wasn't bad at all off road.

If your KB body is in good shape...I'd definitely recommend getting another body to use for bashing.
They are getting tough to find.
I've actually got a Rally body and a Revo body being sprayed with bedliner tomorrow...just to use as basher bodies.

But this being said...if you were really wanting an off road vehicle...the Ken block probably wasn't your best choice.
A Slash,Revo,or Summit would have probably suited you better.

The best thing you can do to increase off road capability is to switch the shocks out to Revo shocks

Pretty sure ALL of the 1/16th scale cars and trucks use the same shocks. The only difference is the on road cars like the Rally cars have internal limiters installed, so you could just take the shocks apart remove the internal limiter and you would have the same thing as Revo shocks.

I wanted a car that was good on road, but capable of going on an RC track. I thought I could with this, and me and my bud are going to dig out a track across the street in the lot right there. I'll post a pic of it, what should I have in the track?

Originally Posted by dcfox

True...I was just suggesting getting a set of Revo shocks so that he could easily switch back and forth if he wanted to.

You said you could increase ground clearance somehow. How do you do that?

Swapping the shocks will give you about a 3/4" increase in ground clearance.
Compare my 2 pics above.
The top one sitting on the shelf...is stock.
The bottom one with the Slash tires/wheels...has Revo shocks on it.

Ok...that's talking about by adjusting the shock collar...which is a very minimal change.
We are talking about maybe 1/4" difference from maximum tightness to all the way loose.

You are apparently wanting something for primarily off road use.
I still think a Revo/Summit/Slash would have been a better choice for you than a rally car.
Good thing is...with the platform you have...for just over 4100..you can convert it to a Revo/Summit...or to a Slash for considerably less.

The amount of travel on the rally suspension is limited because it is purpose built for street use. The 1/16 Revo and Summit both have a lot more travel for off road. Traxxas don't make A 1/16 stadium truck like the Jato. Which is the only style truck that I can think of that's built to be for on and off road. The ride height is adjusted by turning the black ring at the top of the spring.

The amount of travel on the rally suspension is limited because it is purpose built for street use. The 1/16 Revo and Summit both have a lot more travel for off road. Traxxas don't make A 1/16 stadium truck like the Jato. Which is the only style truck that I can think of that's built to be for on and off road. The ride height is adjusted by turning the black ring at the top of the spring.

I Didn't buy this just for offroad. I bought it for asphalt but for also something I could use at an R/C track. Since those tracks also have jumps, that's why I was concerned.

it should just make them tough bodies...not really pretty like a custom painted body.
I'm having the entire body sprayed...inside and out.
It will be a little heavier...but for what i'm wanting them for it will be fine.
Plus...it's a "buddy deal" so it's not costing me anything and they were spare bodies(just in case it doesn't work worth a flip,lol)
I didn't get a chance to go by there and pick them up today...hopefully tomorrow.

All right. Well, now it's time to wait for next week. Than I can buy the shocks. Can't buy them this weekend, but next week because of my race this weekend. Also, what's some fun things to do with the RC car?